I recently purchased a property that I renovated and sold in 06, now I have to pay taxes on my profit ( oh joy). I am having trouble figuring out how it will be taxed. I live in Georgia and I make approximately 22,000 per year, I only made about 10k dollars on my project, I bought the house for 55k fixed it up and sold it for 81k. So according to the government I guess I have a capital gain of 26k. I have been told that in Georgia the capital gain is taxed as income according to your tax bracket. I don't know if this is enough information for anybody to help me or not, but I'm really frustrated and sick with the figures I'm coming up with, no matter how I look at it. Any help would be much appreciated.

Thank you
Luke

Luke:

It's actually pretty simple.

Every dollar over $20,000 earned in Georgia is taxed at a flat 6%.

So you will pay $600 on your $10K profit.